SUISUN, CA--(Marketwired - Mar 16, 2017) - WPCS International Incorporated (NASDAQ: WPCS), a full-service low-voltage solutions provider in the business of developing, installing and servicing integrated structured cabling, audio-visual and security systems, today announced its financial results for the third quarter ended January 31, 2017.

Sebastian Giordano, CEO of WPCS, commented, "For the three and nine months ended January 31, 2017, we incurred an operating loss of $473,000 and $1,632,000, as compared to operating losses of $823,000 and $3,174,000 for the comparable periods in 2016. Meanwhile, our backlog has increased $3,302,000, or 23.8%, to $17,138,000 from $13,836,000 for the same period last year."

Financial Results for the Three Months Ended January 31, 2017

Revenue for the three months ended January 31, 2017 increased $946,000, or 28.5%, to $4,264,000, as compared to $3,318,000 for the same period in 2016. Such increase was due primarily to increases of $734,000 and $212,000 in our Suisun City and Texas Operations, respectively.

WPCS generated a net loss to common shareholders for the three months ended January 31, 2017 of $996,000, as compared to a net loss to common shareholders of $1,233,000 for the same period last year. This quarter's results were comprised of income from: (i) Suisun City Operations of $286,000 and (ii) other income of $20,000, and which were partially offset by: (i) corporate expenses of $470,000; (ii) a loss from our Texas Operations of $289,000; (iii) deemed dividend on convertible preferred stock of $541,000; and (iv) interest expense of $2,000.

Financial Results for the Nine Months Ended January 31, 2017

Revenue for the nine months ended January 31, 2017 increased $922,000, or 7.9%, to $12,528,000, as compared to $11,606,000 for the same period in 2016. Such increase was due primarily to increases in revenues of $881,000 and $41,000 in our Texas and Suisun City Operations, respectively.

WPCS generated a net loss to common shareholders for the nine months ended January 31, 2017 of $878,000, as compared to a net loss of $7,400,000 for the same period last year. This quarter's results were comprised of income from: (i) Suisun City Operations of $832,000; (ii) gain on an arbitration settlements of $1,181,000; and (iii) other income of $143,000, which were partially offset by: (i) a loss from our Texas Operations of $951,000; (ii) corporate expenses of $1,514,000; (iii) deemed dividend on convertible stock of $561,000; (iv) interest expense of $5,000; and (v) an income tax provision of $3,000.

ABOUT WPCS INTERNATIONAL INCORPORATED

WPCS is a full-service, low-voltage solutions provider, installing and servicing integrated structured cabling, audio-visual and security systems for public services, healthcare, energy and corporate enterprise markets in the United States. The Company delivers end-to-end solutions, superior project management and best-in-class products and technology. For more information about WPCS, please visit www.wpcs.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limited to, statements with respect to the Company's future growth opportunities and strategic plan. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

WPCS INTERNATIONAL INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

January 31,

April 30,

2017

2016

ASSETS

Current assets:

Cash and cash equivalents

$

2,340,707

$

2,235,597

Accounts receivable, net of allowance of $206,000 and $92,000 at January 31, 2017 and April 30, 2016, respectively

3,662,932

2,886,154

Costs and estimated earnings in excess of billings on uncompleted contracts

330,724

357,210

Prepaid expenses and other current assets

124,330

66,256

Total current assets

6,458,693

5,545,217

Property and equipment, net

380,980

237,800

Other assets

14,305

21,162

Total assets

$

6,853,978

$

5,804,179

LIABILITIES AND EQUITY

Current liabilities:

Current portion of loans payable

$

62,588

$

53,996

Accounts payable and accrued expenses

1,810,015

2,071,765

Billings in excess of costs and estimated earnings on uncompleted contracts